Connect with us
Advertisement

Taxman complaining that arm cant reach cyberspace

Latest statistics show that Batswana are a Facebook people with almost 1 034 600 users and this number which represent 42.7 percent of this country’s population is exposed to many businesses who  uses the social network as a medium of marketing and advertising.

But this issue of high numbers using Facebook comes as a double edged sword for the Botswana Unified Revenue Services (BURS), limiting the collection of revenues on the cyber space. Companies advertise on Twitter, Instagram and other social media networks and this would affect BURS tax collection. Local economist told WeekendPost that the problem with this country taxation is collection, advising that gathering of taxes should be maximized or prioritized. When reading the national budget recently finance minister Thapelo Matsheka talked of an overall deficit of P1.98 billion, or -1.1 percent of GDP. Matsheka said this negative budget overturn was due to the lower tax collections during the year.

“Efforts will therefore, be intensified to ensure efficiency in the collection of tax revenues by the Botswana Unified Revenue Service through the continuous review of tax laws and leveraging on the use of ICT to enhance compliance,” said Matsheka. BURS director of tax and policy William Nkitseng told attendees at the recent FNBB budget review that business models are changing and going into the digital space, hence the need for the tax regime to evolve. He said businesses are changing from being SMMEs to big digital business model who come with challenges especially taxation issues.

Botswana want to have a digital economy by 2036 and already there has been much evangelism to impart Fourth Industrial Revolution into this nation’s young minds as it is seen as a major tool to being a high income economy. But there is already a challenging facing BURS coming with digital businesses according to Nkitseng, they are not easy to tax. Nkitseng said they wish to tax everyone doing business in Botswana, your Ubers and Netflixes. He gave an example that Uber can own a fleet of taxis from somewhere and someone is Botswana control the fleet, earns a lot of money but not taxed.

Nkitseng said this country’s tax legal framework is limited because tax is withheld looking at physical presence. “We wish to catch these companies….efforts are being made to catch these people, by the end of this year we will know how we can get hold of companies in the digital model. We want your money you make for Google, Netflix/Uber because they make a lot of money here and we don’t tax them,” he said.

Nkitseng and BURS cannot go to Menlo Park, Carlifornia, USA to withhold taxes from Facebook. Netflix is making money in Botswana with a subscription of around P100 per month, but zero tax. By October 2015 Netflix is said to have had 69.17 million subscriber globally and in this five years the number may have doubled.

Botswana has its own Uber now, Hello Cabs which also use the phone app like Ubers’. Uber has a global market value of P720 billion, it generated P120 billion in gross bookings in the most recent quarter. It boast more than 75 million active Uber riders across the world and is available in more than 80 countries worldwide. Nkitseng believes Botswana should also cash from these plaudits via taxation.

He however said the world is aware that digital companies are not paying taxes. It is already a topical issue in the G20 countries’ tops and a highly debated issue. Even regionally, Africa is moving on coming up with inclusive frameworks for the digital economy. But Nkitseng’s concern was not mentioned in the most important announcement of the year which has the government planning period in mind. Matsheka may have missed the taxing of the digital companies, even though Nkitseng said before the end of this year there will have made a plan on how to tax digital businesses. Maybe taxation of the digital economy could have been hidden in the current financial year but not coming out explicitly, it may come out clear during the year in Nkitseng.

Matsheka only said, “To this end, efforts will continue to be made to expand our tax base through review of tax legislation and regulations, to enable the revenue authority to effectively discharge its mandate. It is for this reason that focusing on simplifying the tax legislation continues to be a priority as a way of enhancing tax compliance, while at the same time, reducing the cost of tax administration.”

Continue Reading

News

African countries call on WHO to increase funding

2nd February 2023

Minister of Health Dr Edwin Dikoloti says Africa member states call on World Health Organization (WHO) to ensure equitable resource allocation for 2024-2025. Dr Dikoloti was speaking this week at the WHO Executive Board Meeting in Geneva, Switzerland.

He said countries agreed that there is need to address the budget and funding imbalances by increasing the programme budget share of countries and regions to 75% for the next year.

“The proposed budget for 2024-2025 marks an important milestone as it is the first in Programme Budget in which country offices will be allocated more than half of the total budget for the biennium. We highly welcome this approach which will enable the organization to deliver on its mandate while fulfilling the expectations for transparency, efficiency and accountability.”

The Botswana Health Minister commended member states on the extension of the General Programme of Work (GPD 13) and the Secretariat work to monitor the progress towards the triple billion targets, and the health-related SDGs.

“We welcome the Director’s general proposed five priorities which have crystalized into the “five Ps” that are aligned with the GPW 13 extension. Impact can only be achieved through close coordination with, and support to national health authorities. As such, the strengthening of country offices is instrumental, with particular focus on strengthening national health systems and on promoting more equitable access to health services.”

According to Dr Dikoloti, the majority of countries with UHC index that is below the global median are in the WHO Africa region. “For that, we call on the WHO to enhance capacity at the regional and national levels in order to accelerate progress. Currently, the regional office needs both technical and financial support in order to effectively address and support country needs.”

Continue Reading

News

Botswana still weighing in on Maseko’s assassination

27th January 2023

The Minister of Foreign Affairs, Dr. Lemogang Kwape says Botswana has not taken any position regarding the killing of a renowned human rights lawyer, Thulani Maseko, who was gunned down at his house in Mbabane, Eswatini.

In a brief interview with WeekendPost, Dr Kwape said Botswana has not yet taken any position regarding his death. He said the purported incident should be thoroughly probed before Botswana can form an opinion based on the findings of the inquiries.

“Botswana generally condemns any killing of human life by all means,” says Dr. Kwape. He wouldn’t want to be dragged on whether Botswana will support the suspension of Eswatini from SADC.

“We will be guided by SADC organ Troika if they can be an emergency meeting. I am not sure when the meeting will be called by Namibian president,“ he said.

However, the Namibian president Hage Geingob notes with deep concern reports coming out of Eswatini about the killing of Mr. Maseko. In a statement, he called upon the “Government of the Kingdom of Eswatini to ensure that the killing of Maseko is swiftly, transparently and comprehensively investigated, and that any or all persons suspected of committing this heinous crime are brought to justice.”

Maseko was chairperson of the Multi-Stakeholder Forum which was established as a coalition of non-State actors to advocate for a process of national political dialogue aimed at resolving the security and political challenges confronting the Kingdom.

“SADC expresses its deepest and heartfelt condolences to the family of Mr. Maseko, his friends, colleagues, and to the people of the Kingdom of Eswatini for the loss of Mr. Maseko. In this context, SADC further calls upon the people of the Kingdom of Eswatini to remain calm, exercise due care and consideration whilst the appropriate structures conduct the investigations and bring the matter to completion,” the statement says.

Geingob reiterated the need for peaceful resolution of the political and security challenges affecting the country.

Meanwhile political activists are calling on SADC to suspend Eswatini from the block including the African Union as well.

Continue Reading

News

Kopong Murder: Accused interferes with witnesses again!

27th January 2023

State prosecutor, Seeletso Ookeditse revealed before the Broadhurst Magistrate Jobbie Moilatshimo that the third accused involved in the murder of Barulaganye Aston, has interfered with the State witnesses again.

The second and third accused (Lefty Kosie and Outlwile Aston) were previously accused of interference when they were caught in possession of cellphones in prison. They were further accused of planning to kill the deceased’s brother, who is currently the guardian to the children of the deceased.

Ookeditse indicated that Outlwile had earlier went to challenge the magistrate’s decision of denying him bail at the High Court before Judge Michael Motlhabi.

“The third accused approached the High Court and made a bail application, which was dismissed on the same day,” Ookeditse said.

However, even after the High Court verdict on their bail application, the duo (Kosie and Aston) has once again applied for bail this week.

Ookeditse plead with the court to stop the accused from abusing the court process.

“Yesterday, Directorate of Public Prosecutions (DPP) received papers of his bail application filed before the Broadhurst Magistrates Court. However, the papers do not speak to changed circumstances, therefore this back and forth about bail must be put to a stop,” said the State prosecutor.

While giving evidence before court, the Investigations Officer, Detective Inspector Quite Zhalamonto, said his investigations have proved that there is interference continuing regarding the accused trio.

He told the court that on the 12th of January 2023, he received a report from Thato Aston, who is the son of the accused and the deceased. The son had alleged to the Investigation Officer that he received a call from one Phillip Molwantwa.

According to Zhalamonto, Thato revealed that Molwatwa indicated that he was from prison on a visit to the Outlwile Aston and went on to ask where he was staying and where his siblings (Aston’s children) are staying.

“Thato revealed that Phillip went on to ask if he or his siblings saw their father murdering their mother, and he was referring to the crime scene. Thato told me that he, however, refused to answer the questions as he was afraid especially because he was asked about where him and his siblings stay,” said Zhalamonto.

Zhalamonto alluded to the court that he then went to Orange to confirm the communication between Thato and Molwantwa where he found the case.

“I have arrested Philip yesterday and when I interviewed him, he did not deny that he knows Aston and that he has indeed called Thato and asked questions as to where him and his siblings resides even though he failed to give reasons for asking such questions,” Zhalamonto told the court.

He further revealed that Molwantwa indicated that he had received a call from an unknown man who refused to reveal himself.

“Phillip told me that the unknown man said he was sent by the accused (Aston), and that Aston had instructed him to tell me to check if there was still some money in his bank accounts, and he also wanted to know where the kids were residing, the unknown man even asked him to meet at Main Mall” the Investigation Officer told the court.

He further informed the court that he is working tirelessly to identify the “unknown caller” and the route of the cell number.

Furthermore, the fourth accused, Kebaleboge Ntsebe, has revealed to the court through a letter that she was abused and tortured by the Botswana Police Services. She wrote in her letter that she suffered miscarriage as a result of being beaten by the police.

Ntsebe is on bail, while a bail ruling for Aston and Kosie will be delivered on the 6th of next month

Continue Reading